Vivian Tu, a former Wall Street trader, became a millionaire by 27. Today, she is one of the foremost voices tackling the financial future of Millennials and Generation Z. As the founder of Your Rich BFF and author of “Rich AF: The Winning Money Mindset That Will Change Your Life,” Tu emphasizes that these younger generations are playing life in advanced mode on an old, broken TV, confronted with severe economic obstacles.
Millennials have a double whammy. Arguably, they are the first generation to be worse off than their parents, indicative of widespread societal and economic shifts. For one, as Tu highlights, Millennials and Gen Z have grown up in times of crisis. Each of these disruptive events has dramatically impacted their financial outlook. Events such as 9/11, the Iraq War, the 2008 housing crisis, Brexit, the COVID-19 pandemic, the January 6 insurrection, the FTX debacle, and the 2023 collapse of major banks have all contributed to a pervasive sense of uncertainty.
The fact that housing prices have exploded on all economic strata, is another major challenge for young people today. Once considered a bedrock of middle-class wealth-building, homeownership has become harder to come by with the increasing costs. Due to these barriers, only eight percent of young adults today are fully economically independent. Moreover, according to the Census Bureau’s Current Population Survey, one out of every three adults age 18 to 34 continue living with their parents.
Through her own story and those around her, Tu pinpoints the discord between personal dreams and the institutional hurdles too many youth face. She notes that individuals from modest backgrounds, such as those raised in blue-collar families in Appalachia, face an uphill battle when trying to achieve their career goals in competitive industries like technology. Making the leap from a local business to a high-tech operation like Google presents its own challenges. The challenges are great and require a delicate balancing act.
One influential study from 2010 found that happiness was positively related to income up to about $75,000 per year. New research from 2021 indicates that this threshold is outdated, even when accounting for inflation. This change is a reflection of the financial realities that Millennials and Gen Z have to deal with today.
Economists almost universally consider a stable long-term growth rate of around 2% indicative of a booming economy. This is crucial for millennials and gen z—our nation’s workforce and climate emergency-fighting heroes—who are seeking sustainable stability. Given these realities, Tu’s main advice for young people is to take a forward-looking perspective on their finances. Some may even tell you to take it easy when you’re fighting uphill. She maintains that a strategic approach to thinking and acting is important for all levels of success.
“Just relax.” – Vivian Tu
Tu is an impassioned speaker for the cause of financial literacy and empowerment. She stresses the importance of creating a winning mentality in order to confront challenges directly. Her book, Rich AF, serves as an inspirational compass for millennials. It empowers them to change their own money stories and cultivate the strength to thrive even when life goes off-script.
Tu’s findings hit home, perfectly mirroring what so many Millennials and Gen Z are going through today. The economic climate has changed drastically since our parents and grandparents’ time, bringing burdens with no precedent that demand creative responses. The clear, conventional pathways to wealth accumulation that filled those gaps—homeownership and good, stable jobs—are not readily available today.
The challenges posed by rising housing costs are particularly acute for young people in urban areas where demand exceeds supply. Others are stuck in volatile environments, needing to depend on mom and dad for aid or living with their pals or roommates. Yet, as rents are skyrocketing and opportunities evaporating, the dream of financial independence seems further out of reach than ever.
Furthermore, Tu’s perspective informs the larger implications of these economic realities. Young people today are experiencing a perfect storm of trauma. These challenges are profoundly shaped by history and the persistence of contemporary socioeconomic dynamics. The intersection of all these different elements makes this a time of great change where making money is going to take flexibility and some foresight.
Millennials and Gen Z are dealing with urgent financial matters on a daily basis. Conventional financial wisdom misses the mark with them time and again. Tu advocates for the rejection of antiquated money advice that keeps people stuck in mediocrity instead of thriving.